TOL Gases eyes 3 African countries as profit jumps

Business

“Following improvement in Aspen Plant, the company is engaged on finding customers for bulk liquid oxygen and nitrogen in the neighbouring countries of Kenya, Zambia and Zimbabwe,”      

By Veneranda Sumila, The Citizen Reporter

In Summary

Its net profit jumped from Sh998 million in 2013 to Sh2 billion last year, according to its latest financial statement.

Dar es Salaam. TOL Gases Limited is mulling to start selling its products to Kenya, Zambia and Zimbabwe as the company’s 2014 profit more than doubles.

Its net profit jumped from Sh998 million in 2013 to Sh2 billion last year, according to its latest financial statement.

The increase in profits, the statement says, was a result of completion of the first round of the rehabilitation of its Aspen Plant. The completion improved reliability and efficiency.

On average according to the statement, the plant is producing at 80 to 90 per cent efficiency.

“Total power consumption per cubic metre of gas produced has gone down by 43 per cent. The plant now can produce crude argon and it is expected that the plant will be in a position to produce pure argon in the second phase of repairs expected in the last quarter of 2015,” reads the report.

The Dar es Salaam Stock Exchange-listed company has increased storage capacity for liquid gases which ensures continuous availability of industrial gases in the market. It also saves the company’s energy costs through production by batch method.

“Following improvement in Aspen Plant, the company is engaged in finding customers for bulk liquid oxygen and nitrogen in the neighbouring countries of Kenya, Zambia and Zimbabwe,” the statement reads in part.

Already, it has engaged one such customer from Zambia through a supply contract beginning in the second quarter of 2015. In the year ending December 2014 according to the report, the carbon dioxide line continued to grow as the company continued to demonstrate its reliability and consistency of supplying high quality food grade carbon dioxide to both local and foreign bottling customers.

Storage capacity was increased by 100 tonnes during the year, three additional 20 tonne tankers were also added during the year.

“The company will continue to invest in both its storage and transport capacity for carbon dioxide to strengthen reliability and increase market share across East Africa and SADC region,” the report said.

Already the company is supplying Malawi, Zambia and DRC market,” says the report.